What Defense Stocks Say About a More Violent World

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Though shares of military contractors only price in a small chance of escalation in Israel’s war with Hamas, financial factors muddle the signal

Shares of big military contractors such as Lockheed Martin, maker of the F-35 Lightning II jet fighter, have shot up after Hamas’ attack on Israel.

The bloody attack on Israel and inevitable retaliation have turned defense stocks into gauges of geopolitical risk, albeit imperfect ones. For now, they are flashing amber rather than red.This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

 

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